Fund Type: Distressed Real Estate & Non-Performing Mortgage Loans
Fund inception: 2012 ( fully subscribed)
Stonecrest has built a niche within the Non-Performing Mortgage Loan (NPML) and Real Estate Owned (REO) markets. We invest in moderate income assets throughout the United States and the Capital Income and Growth Fund gives our investors the opportunity to benefit from this unique marketplace. Exit strategies are diverse and ensure maximized returns for our investors.
How it Works
Our strategy is carried out over a 42-month period and includes acquisition, property disposition, and liquidation of all assets. Stonecrest maintains a unique relationship with lenders, hedge fund managers, and loan servicers nationwide. Our partners understand the strict seller profiles and low price requirements set by Stonecrest. After acquisition, we employ diverse strategies for property disposition including loan modification, foreclosure, deed in lieu, realtor cash sales, carryback financing, payments, or short sales/sale of mortgage. During or prior to the 30th month, we continue to purchase assets for resale while ceasing the creation of new land sale contracts and mortgages. We sell the equity in land sale contracts and notes secured by deeds of trust or mortgages. Mortgages are sold into the private investor and secondary markets. Stonecrest strives to generate an all-cash price on each mortgage for up to 70% of its face value. All contracts are sold, the Fund is liquidated, and all cash distributed, between the 30th and 42nd months of the Fund.
- Steady dividends in combination with superior growth potential.
- Higher-than-average returns.
- Participation in a diversified portfolio containing real estate from all over the U.S.
- Professional, full-service account management.
|Preferred Interests Offered||4,000|
|Price per Preferred Interest||$5,000|
|Maximum Offering Amount||$20,000,000|
|Anticipated Return||20-25% Annually|
|Preferred Return||10% for Investors, in first $10M; 8% for investors who join the fund afterwards.|
|Annual Dividend Paid (Paid Quarterly)||5%|
|Final Distributions||50% to Members and 50% to Manager|
|Fund Set-up Expenses||$50,000|
|Term of Fund||3.5 years|
Sales of real estate slows during the winter months, especially in the mid-west and eastern parts of the country. With that being said, our sales team was able to sell twenty-four REO’s and five non-performing notes. We are looking forward to a robust selling season for spring and summer as winter exits in many parts […]
The Capital Income & Growth Fund will be winding down in 2017, with distributions of shareholder capital coming at each quarter end starting in Q1 and ending in Q4. Stonecrest was considering opening a new distressed asset fund but hesitated because of concerns regarding the availability of inventory in the coming years. Then we discovered […]
For the third quarter, our sales team was able to liquidate thirty nine REO assets, as well as sell forty low-value mortgages from our inventory. We have continued to purchase a handful of bay area properties from our tax delinquent marketing program. These properties, though hard to find, have a higher profit margin than auction […]
In addition to the REO purchases from auction companies, Stonecrest’s Capital Income and Growth Fund has been purchasing and marketing tax defaulted properties throughout California. We were able to have a list created for us that designates how delinquent a particular homeowner is on their property. We then contact them via letter, telemarketing, or a […]
The number of REO assets that are available for auction has remained steady, with Freddie Mac still being the largest seller. We continue to hear from our auction company contacts that Fannie Mae is going to start selling occupied properties in volume. At this point, we have yet to see any significant number of those assets coming to market. […]
Due to the late onset of winter in the East, Stonecrest’s Capital Income & Growth fund was able to sell fifty-two properties through our retail division and thirty modified notes through our note division. In late February, we will be attending the Mortgage Banking Servicing Conference in order to meet with prospective sellers of REO’s […]
The Capital Income and Growth Fund had a busy third quarter, selling 49 properties, 12 notes, and modifying 8 delinquent loans. We are still seeing plenty of opportunities for investing in discounted real estate and mortgages. In fact, the number of assets for sale from Freddie Mac is increasing and, just recently, Fannie Mae has […]
The national real estate market continues to improve and the demand for housing is increasing. Stonecrest’s Capital Income & Growth Fund had a solid second quarter with the retail team selling seventy-seven properties and the loan team selling nineteen modified loans. The demand for performing modified loans is strong as investors look for consistently higher […]
Considering the harsh winter that we had in the mid west and eastern parts of the country, our sales of houses did well. We sold forty-nine properties over the quarter. Now that spring has arrived, the market is thawing. We are extremely busy with sales activity across most of the country. We have also been […]
The fourth quarter was an active one for Stonecrest’s Capital Income & Growth Fund, with both the acquisition and sales departments involved in multiple trades. The national market for real estate sales overall is still good and we were able to sell eighty six properties. Most of these properties needed some rehabilitation, which opens the […]
Stonecrest’s Capital Income & Growth Fund had another strong quarter with continued growth coming from sales in most of our segments. In particular, the Retail, Land Contracts, and Notes departments did well. Nationally, the overall resale market to individuals, as well as to other small hedge funds, has been steadily increasing and we are looking […]
The results for the second quarter were strong with our retail sales department leading the way. We closed escrow on over $2.7 million in real estate transactions for a gross profit of close to 500k. The asset managers and foreclosure department are continuing to turn our non-performing loans into homes that we can list and […]
During the final two quarters of 2013, Capital Income & Growth Fund acquired a significant number of non-performing loans and REO properties for the portfolio. Because of this, our asset managers have been very focused on resolving as many assets as possible during the first quarter of 2014. Retail REO sales, note sales, and loan […]
Stonecrest’s Capital Income & Growth Fund was able to negotiate and close a large trade of non-performing notes from Citibank at the end of the fourth quarter. These loans were spread throughout the country with a concentration in both Texas and Florida. It is a very good pool and we are happy with the negotiated […]
Stonecrest was able to negotiate and close on a large pool of non-performing notes during the third quarter. We purchased these assets from a hedge fund that was closing out their fund and needed cash to distribute to their partners. Additionally we were able to win the bid for a pool of fifty loans from […]
The asset managers for Stonecrest’s Capital Income & Growth Fund are continuing to have success with their strategy of convincing borrowers to deed us their properties rather than go through foreclosure. Typically, borrowers are more than willing to follow this path because they prefer to avoid foreclosure. However, sometimes there are other liens against their […]
The real estate market continues to improve in most parts of the country with the Bay Area being one of the brighter markets. This fact increases the value of our land contracts and non-performing notes by increasing the underlying value of the real estate. Our asset managers have been working away at the large Citibank […]
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes:||$863,895|
|Non-performing Notes Summary|
|Cost of notes:||$11,070,919|
|Modified Notes Summary|